CSFBdirect, the online brokerage service of Credit Suisse First Boston, is to cut 180 jobs, or 14 per cent of its domestic employees, in light of current trading activity.
The planned staff reductions will occur in Jersey City and East Brunswick, New Jersey and Charlotte, North Carolina. Approximately half of the personnel reductions will be in technology.
CSFBdirect will also reduce space requirements in Charlotte, North Carolina and Jersey City, New Jersey. CSFBdirect will take a one-time pre-tax charge of approximately $16m in the second quarter of 2001, which includes $7m associated with the previously announced sub-lease of space in Jersey City, New Jersey. The approximate annual cost savings is estimated to be $22m.